Government Puts On Hold LoI Issuance To Successful Bidder Of Central Electronics

The issuance of the Letter of Intent (LoI) to the successful bidder of Central Electronics Ltd (CEL) has been put on hold, pending examination of specific allegations regarding the bidder, the Rajya Sabha was informed on Tuesday.

In November, the government approved the highest price bid of Rs 210 crore by the Delhi-based Nandal Finance and Leasing Pvt Ltd for the sale of 100 per cent equity shareholding of the government of India in CEL -- a CPSE under the Department of Scientific and Industrial Research (DSIR).

In a written reply to a question in the Rajya Sabha, the Minister of State for Finance Bhagwat Kishanrao Karad said, for the strategic disinvestment of CEL, open bids were invited based on the criteria of networth as laid down in Preliminary Information Memorandum (PIM)/ Expression of Interest (EoI). "The field of work of the bidder is not among the relevant criteria.

It is a part of the disinvestment policy of the government to not make sectoral experience a qualification criterion for bidders to expand the universe of bidders and provide them a level-playing field," Karad said. He was replying to a question on whether the bid for privatisation of CEL, has been won by the Nandal Finance and Leasing Ltd, a furniture making company.

To another query on whether the government has postponed/cancelled the privatisation of CEL, Karad said "the Letter of Intent (LoI) has not been issued to the successful bidder and put on hold pending examination of specific allegations regarding the bidder".

Incorporated in 1974, CEL, under the Ministry of Science and Technology, is a pioneer in the field of Solar Photovoltaic (SPV) and it has developed the technology with its own R&D efforts. It has also developed axle counter systems that are being used in Railway signaling systems for the safe running of trains.

(PTI)